By Jayshree P Upadhyay

July 31 (Reuters) - India's income tax authorities are

reviewing documents across the local offices of U.S. trading

firm Jane Street and its trading partner Nuvama Wealth

, two sources aware of the matter said on Thursday

The sources requested anonymity as they are not authorised

to speak to media.

India's markets regulator on July 4 temporarily banned Jane

Street from trading in Indian markets, alleging the firm

manipulated stock indexes through its derivatives positions.

The U.S. brokerage has deposited $567 million in an escrow

account, representing what the regulator said are "unlawful

gains," in a bid to resume trading while reserving its legal

rights.

The firm has denied the allegations and called the trades

basic arbitrage.

Nuvama said on Thursday evening that the review of the

documents was still underway.

"The Company is extending full co-operation with the

authorities and sharing requisite information," Nuvama said in a

statement to the exchanges.

Nuvama's shares closed 2.33% lower on Thursday, in a weak

broader market.

Emailed queries sent to Jane Street and India's tax

authorities were not answered.